Anil Nanda moves HC to quash order on Escorts

Published: Monday, July 14, 2008, 18:06 [IST]

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New Delhi, Jul 14 (UNI) Mr Anil Nanda, the younger brother of Escorts Group Chairman Rajan Nanda, moved the Delhi High Court today to quash a single bench order over conversion of Escorts Heart Institute and Research Centre (EHIRC) into a company.

However, a division bench headed by Justice A K Sikri refused to pass any order when the opposite party led by his brother Rajan Nanda brought to notice that the affected parties have not been made respondents.

The bench adjourned the matter till July 22 for further hearing.

Earlier, a single bench of Justice B D Ahmed had rejected Mr Anil's similar plea on technical ground. It ruled that the petitioner had not sought the court's permission before filing the suit.

As per section 92 of the Civil Procedure Code (CPC), it is obligatory for a private person to take permission of the court before filing a suit pertaining to a public trust.

The court pointed out that Section 92 of the CPC was applicable in suit filed by Mr Anil. Entirely based on the point of conversion of a charitable society into a company with objects of private gain, he had not claimed any personal relief, the court observed.

However, the petitioner had also challenged the amalgamation of the EHIRC Delhi with the EHRIC Chandigarh, before converting it into a full fledged company.

Mr Anil had filed the suit in 2005 against his brother Rajan Nanda, EHIRCL and others after the public charitable was converted into a company.

The petition alleged that his elder brother Rajan had appropriated funds of the EHIRC Delhi by forming another society in Chandigarh and amalgamating them before converting it into a company.